18 Murraygate, Dundee Prime Retail Investment Opportunity

18 Murraygate, Dundee Prime Retail Investment Opportunity

LOCATIONDundee is Scotland’s fourth largest city with a resident population of over 200,000 and is situated on the north side of the River Tay estuary, 60 miles north of Edinburgh, 25 miles east of Perth and 67 miles south of Aberdeen. The city is the principal centre in the Tayside region, providing the major focus for retail, administration, financial, leisure, education and health services as well as boasting one of the UK’s leading Universities.

The city benefits from excellent motorway links to Glasgow, Perth, Edinburgh and Aberdeen enabling over 90% of the Scottish population to be in Dundee within a 90 minute drive time. Dundee is also situated on the main East Coast rail line, providing regular rail services to Aberdeen in the north and Edinburgh and eventually to London in the south. Dundee also has a domestic airport with regular flights to and from London, Birmingham, Belfast, and Jersey.

Dundee is regarded as one of Scotland’s most attractive in retailing terms supporting over one million sq ft of dedicated retailing floor space. Dundee’s total catchment retail expenditure is in excess of £1.4bn and the city has over 640,000 persons within a 60 minute drive.

INVESTMENT CONSIDERATIONS

g Dundee is Scotland’s 4th largest city with a resident population of over 200,000

g Highly prominent retail investment positioned on the prime pedestrianised retailing pitch of Murraygate

g Let to Thorntons PLC on FRI terms expiring 27 March 2017 at a passing rent of £72,500 per annum (£84 per sq.ft. Zone A)

g New 5 year lease extension at re-based rent

g Creditsafe Rating of 97 out of 100 indicating ‘very good credit worthiness’

g Offers in excess of £685,000 reflecting a net initial yield of 10% after purchasers costs of 5.8%

SITUATIONThe subjects are situated on the western side of Murraygate, Dundee’s prime pedestrianised retailing pitch. Murraygate links the Overgate Centre at the western end of the street, to the Wellgate Centre located at its eastern end. Surrounding occupiers include HSBC, JD Sports, Marks & Spencer, Tesco Metro, Phones 4U.

DESCRIPTIONThe property comprises a well configured retail unit arranged over ground and first floors within a traditional tenement building. The principal retailing area is located on the ground floor with ancillary storage accommodation located at the first floor. The upper floor residential flats are in separate ownership.

18 Murraygate, Dundee Prime Retail Investment Opportunity

COVENANT STATUSWith a trading history of over 100 years, Thorntons PLC is the largest independent confectionary company in the UK. The company is listed on the London Stock Exchange and has a current Dun & Bradstreet rating of 3A1, classified as a minimum risk of business failure, based on their latest accounts filed in July 2012.

For the year ending 30/06/2012 the company recorded a sales turnover of £217.14m, a trading loss of £2.21m and a tangible net worth of £10.02m.

Thorntons has also recently announced its half year results for the 28 weeks ended 12th January 2013. Key points include:

• Revenuesup2.9%to£133.7million(2012:£130.0million).

• Profitbeforetaxandexceptionalitemsroseby£2.2millionto £5.3 million (2012: £3.1 million).

• Profitaftertaxroseby49.3%to£4.0million(2012:£2.7million)

Further information can be obtained at investors. thorntons.co.uk

TENUREHeritable Interest.

TENANCYFollowing a strategy review last year, Thorntons announced they would re-shape their own store portfolio concluding they could trade profitably from an estate of 180 – 200 stores. These stores are to be located in vibrant high streets and malls with sustainable footfall and rents that support their business model.

Thorntons have successfully traded from the subject property for over 15 years and in March 2012 extended their lease for a further 5 year period at a re-based rent.

The property is therefore let to Thorntons PLC on FRI lease terms expiring on 27 March 2017 at a passing rent of £72,500 per annum (£84 per sq.ft. Zone A).

ACCOMMODATIONThe property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and extends to the following:

SQ. M SQ. FT

Ground floor 82.78 891

First floor 113.81 1,225

ITZA 80.55 867

The ITZA of 867 sq. ft was agreed at previous rent reviews.

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MCEWANS LLOYDS NO 1

Dundee

50 metres

Ryden LLP 14/3/2012

VATThe property is elected for VAT. We assume that the purchase can be enacted by way of a Transfer of a Going Concern (TOGC).

PROPOSALWe are instructed to seek offers in excess of £685,000 exclusive of VAT for our clients heritable interest subject to and with the benefit of the existing lease. A purchase at this level reflects a net initial yield of 10% after allowing for purchasers costs of 5.8%.

FURTHER INFORMATION/VIEWINGTo arrange a viewing or for further information please contact the joint selling agents:

Nick Armstrong Ryden LLP 46 Castle Street EdinburghEH2 3BN0131 473 3223nick.armstrong@ryden.co.uk

Misrepresentation ActMessrs Savills Commercial Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that:1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute, nor

constitute part of, an offer or contract.2. All descriptions, references to condition and necessary permission for use and occupation and other details are given in good faith and

are believed to be correct but any intending purchasers should not rely on them as either statements or representation of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. All dimensions are approximate.

3. No persons in the employment of Messrs Savills Commercial Ltd has any authority to make or give any representation or warranty whatsoever in relation to this property.

4. All correspondence regarding this offer is subject to contract.Designed and Produced by Savills Marketing: +44 (0) 20 7499 8644March 2013

SUBJECT TO CONTRACT

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Rod Leslie Savills Wemyss House, 8 Wemyss PlaceEdinburghEH3 6DN0131 247 3812rleslie@savills.com

18 Murraygate, Dundee Prime Retail Investment Opportunity

18 Murraygate, Dundee Prime Retail Investment Opportunity

EPCThe property has an Energy Performance Certificate rating of D.